Answer:
u can use quillbot.com
Explanation:
it makes a few sentences into a lot giving a whole article on something off of a few sentences u write
Answer:
$17.27
Explanation:
The stock intrinsic value is calculated using dividend discounted model (DDM). The DDM is stated as below:
Stock intrinsic value = [This year dividend x (1 + Dividend growth)]/[Equity cost of capital - Dividend growth]
= [1.9 x (1 + 0%)]/[11% - 0%] = $17.27
So vlaue of NoGrowth's stock is estimated at $17.27
Answer:
The last option is the answer -$141.80
Explanation:
we will use the present value formula for Trish she gets paid every first day of the month therefore she will receive an immediate payment of cash flow which will be added to the present value of future periodic value. Therefore we will find the difference between present values for Trish and Josh which have the same amounts which they'll receive per month.
Given: Trish and josh both receive $450 per month therefore that will be C the monthly future payment that will be received.
They will receive these amounts in a course period of Four years so that will be n = 4 x12=48 because we know that they will receive these payments every month or on a monthly basis for four years. which n represent periodic payments.
i which is the discount rate of 9.5%/12 as we know they will recieve these amounts monthly.
Therefore using the following formulas for present value annuity:
Pv = C[(1-(1+i)^-n)/i] and Pv= C[(1-(1+i)^-n)/i](1+i) then get the difference between these two present values for Trish and Josh.
therefore we will substitute the above values on the above mentioned formula to get the difference:
Pv= 450[(1-(1+9.5%/12)^-48)/(9.5%/12)] - 450[(1-(1+9.5%/12)^-48)/(9.5%/12)](1+9.5%/12) then we compute and get
Pv= $17911.77614 - $18053.5777
Pv = -$141.80 is the difference between the two sets of present values as one has an immediate payment and one doesn't have it.
Answer:
C $ 57,282.803
Explanation:
We solve for a growing annuity at arithmetic increases of 5,000
![(a_1+\frac{d}{r} +d \times n) \times \frac{1-(1+r)^{-time} }{rate} - \frac{d \times n}{r}](https://tex.z-dn.net/?f=%28a_1%2B%5Cfrac%7Bd%7D%7Br%7D%20%2Bd%20%5Ctimes%20n%29%20%5Ctimes%20%5Cfrac%7B1-%281%2Br%29%5E%7B-time%7D%20%7D%7Brate%7D%20-%20%5Cfrac%7Bd%20%5Ctimes%20n%7D%7Br%7D)
a1 = 30,000
d = 5,000
r = 0.10
time = n = 10
![(30,000+\frac{5,000}{0.1} +5,000 \times 10) \times \frac{1-(1+0.1)^{-10}}{0.10} - \frac{5,000 \times 10}{0.10}](https://tex.z-dn.net/?f=%2830%2C000%2B%5Cfrac%7B5%2C000%7D%7B0.1%7D%20%2B5%2C000%20%5Ctimes%2010%29%20%5Ctimes%20%5Cfrac%7B1-%281%2B0.1%29%5E%7B-10%7D%7D%7B0.10%7D%20-%20%5Cfrac%7B5%2C000%20%5Ctimes%2010%7D%7B0.10%7D)
PV $298,793.72
Now, we calculate the installment of this which is the equivalent uniform annual cost
PV 298,793.72
time 10
rate 0.14
C $ 57,282.803
Answer:
Average investment(denominator) = $113,000
Explanation:
<em>Annual rate of return is the average annual income as a percentage of average investment
. It is the proportion of the average investment that is earned, on the average, as annual income.</em>
Annual rate of return = annual net income/ average investment
Average investment =( Initial,cost + scrap value)/2
Average investment = (220,000 + 6,000)/2= $113,000
Average investment(denominator) = $113,000